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Economics

Market failures and public policy

Identify situations where markets can miss social costs or benefits and assess possible responses.

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Where this chapter sits in the course

Lessons

Chapter 9 of 18 · 6 short lessons · 25 min
  1. 1Externalities4 min
  2. 2Policies for negative externalities4 min
  3. 3Public goods and common resources4 min
  4. 4Asymmetric information4 min
  5. 5Policy trade-offs and government failure3 min
  6. 6Challenge: Market failures and public policy6 min

What you'll learn

  • Identify externalities and information problems
  • Classify public goods and common resources
  • Compare policy responses and their trade-offs

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